The brand new amenities, in accordance with K92, would additional bolster its sturdy monetary place. As of the top of Q1 2024, the miner, which operates the Kainantu mine in Papua New Guinea, had $73.4 million in money and treasury payments and no debt.
Along with the credit score amenities, the events have signed a brand new offtake settlement, below which Trafigura will purchase 100% of K92 PNG’s copper/gold concentrates produced at Kainantu. The brand new deal once more replaces a September 2023 settlement between the events, which didn’t come into impact.
The upsized mortgage, stated K92 CEO John Lewins, is “an necessary monetary de-risking milestone” for delivering the Stage 3 and 4 expansions of the Kainantu gold mine and remodeling the corporate right into a Tier 1 mid-tier producer.
The Kainantu operation — with a present capability of 500,000 tonnes each year (tpa)– is focused for 2 extra expansions that will see its capability rise to 1.7 million tpa and mine life prolonged to 11 years on the remaining stage.
Annual manufacturing from Levels 3 and 4 is predicted to achieve 290,000 oz. and 470,000 oz. of gold-equivalent respectively, successfully inserting K92 on monitor for Tier 1 manufacturing.